An examination of the relationships between JIT and financial performance

Abstract Despite abundant information explaining the expected benefits from successful just‐in‐time (JIT) implementation, only tenuous validation of the linkage between financial performance and JIT exists. Managers act rationally in implementing JIT if they are convinced that JIT enhances firm performance. From both a cross‐sectional and longitudinal perspective, this survey study of 253 US manufacturing firms finds significant statistical relationships between measures of profitability and the degree of specific JIT practices used. The evidence provides empirical support to the premise that firms that implement and maintain JIT manufacturing systems will reap sustainable rewards as measured by improved financial performance.